After the Eighteenth National Congress of the Communist Party of China, a new round of anti-corruption campaign has been going on. With almost fifty provincial officials, more than 600 director-level officials and more than 200,000 petty officials snared, this campaign is being conducted in a harsh way on a large scale.
More importantly, as Vice Primer WANG Qishan pointed out, the ultimate goal is to reach the “would not think of it”stage from the current “would not dare”stage. In order to realise this goal, the passive control and surveillance measurements which have been carried on over decades may not be able to meet the demand. What should be prior taken into consideration is institutional designs for a clean government.
If we look for a successful example for China on anti-corruption reform, Hong Kong may be a good one. During the 1960s, with the increasing population and the rapid expansion of manufacturing industry, Hong Kong was faced with a similar situation which corruption was wide-spread around the force and the community in mainland China nowadays. (Manion, 2004)And yet since 1974 when the Independent Commission Against Corruption (ICAC) was created, the anti-corruption interventions has empowered to accomplish the transformation. This commission, according to the Basic Law, functions independently and is directly accountable to the Chief Executive. (Scott, 2011
So the paper is conducted by analysis on causes of corruption and anti-corruption measurements in mainland China, followed by the evaluation and comparison of Hong Kong and mainland China. Though sharing a Chinese culture, great difference remains between each other. Especially when we focus on the anti-corruption achievement, Hong Kong, considered as the freer market from government intervention, has incredible achievements in combatting institutionalised corruption while China, during two decades of anti-corruption campaign, remains one of the most corrupt countries.
This paper considers the rooted causes and problems of the anti-corruption strategy in mainland China. By introducing the incidence of Chen Xitong and the general situation on state personnel corruption, it argues extent, forms and characteristics and the institutional loopholes of Chinese government. Meanwhile, the process of the transformation in Hong Kong will be illustrated empirically and compared with the process in mainland China. The key part——ICAC will be evaluated. And the suggestions of establishing such commission in mainland China will be introduced and tested. The main researching method is new institutionalism by focusing on the institutional design and informal practice in mainland China.
The definition of corruption
Corruption, simply speaking, means the abuse of power for illegal monetary transaction. One of the most comprehensive definitions that by a short simply wording incudes both a public and private sector corruption comes from a Vienna-based prof. Anis H. Bajrektarevic: “Seemingly victimless, hidden trade-off between influence and gain” (Bajrektarevic, Palermo Treaty system, Addleton NY, 2011). The World Bank defines (public) corruption as the abuse of public office for private gains. However, when it comes to a definition in concrete terms which contain too much connotation.(Girling, 1997) In addition, the causes and the results of public-private sector corruption are diverse. It can be traced in governments and civil societies, which include economic systems, administrative systems, judiciary systems and so on. (Harris, 2003) No matter how broad and complicated the concept is, it can reflect rules and violators who against those rules can be identified and punished. (Gambetta, 1999)
In the Chinese context, there are two major definitions that can be applied to China in the transition period. For those who are in favor of a tough enforcement and party disciplinary, they would like to provide a more broad-based definition which includes public offices, public interest and public opinions factors. By contrast, for those who are in favor of an effective effacement and market efficiency, they would focus on the abuse of public office. (Sun, 2004) Though there is no formalistic answer to the question on what the definition is, this paper would use a definition corresponding with the Chinese context. The corruption is defined as the abuse of authority or the public power by occupants in the government or the party to gain private interests. This interpretation narrows down to the public office level that focuses on the abuse of public power in the political activities.
Corruption in Mainland China
The process of corruption in China after 1949 can be roughly divided into two periods. There is the classical communist period from 1949 to 1976 and the socialist market from 1976 to the present. (Harris, 2003)
From 1980 on, the development of corruption took place together with the legitimating of financial pursuit, delegation of power to an individual or an agency, fast expansion of the market economy, deficiency of the Party’s discipline as well as delaying in introducing regulatory control and required on time legislative renewal. (Kwong, 1997)
One case disclosure shocked the public. That is that the mayor of Beijing——Chen Xitong was found directly engaging in bribe taking, with numerous bribe givers and huge material rewards. Even for Chen Xitong, whose downfall is often interpreted as political, the size of his booty warranted his fate. Two private villas, where Chen spent his leisure time and kept his mistresses between January 1993 and February 1995, cost the public nearly Y40 million in maintenance fees, and Y1.05 million in catering expenses. According to Sun (2004), “The villas were filled with luxuries ranging from gold doors and agate floors to extensive maintenance and security. Eventually, he was sentenced to 16-year jail term. ”(p. 148).
In Alan Liu’s categories, the forms of corruption in mainland China can be roughly divided into three groups. The first one is universal in all political systems including bribery, embezzlement and abuse. The state property is still a main target but not the only one. Instead, it is the greater inducement from and dependence on the market that now defines the forms and methods of violation. The second type is related to the economic reform, such as accounting violation and privilege seeking. When decentralisation was carried on gradually, autonomy and increasing resources have facilitated corruption dynamically. Precisely, there is linkage between economic liberalisation and corruption. Third one is resulted from moral degradation in a broad way. Sun (2004) states that “even here the marketplace has stimulated distinctive forms of moral deviation in recent years.”(p. 51).
Causes of corruption in China
The growth of corruption is considered as a policy outcome.(Gong, 1997)It results from mainly the economic reform in an unconscious way during the reforming and opening period. In general, economic reform which is for market development and economic growth, has built up the advantageous condition for the explosion of corruption. Increasing business opportunities, the looser economic policies and the higher payoffs motivated officials to get involved in corruption.
To break through the planned economy which made the economy in China stall market economy was introduced to China 30 years ago. Wedeman (2012) states “this reform help China accomplish an economic miracle,” which also makes China lie on the top in the international community. As the continuous development of market economy and reform and opening going deeper, corruption has come out as an ineluctable social phenomenon.
During the reform of economy, market competition is one of the most important factors which cannot be underestimated. When analysing the relationship between market economy and corruption, both western and Chinese scholars found out the paradox. There is a negative correlation between economic growth and corruption. Firstly Paolo Mauro, followed by other economists, found that the higher the rate of corruption is, the lower the rate of development is. Empirically, they drew out a conclusion that when the rate of corruption increases one point, it results in the reduction of one percent in economic growth. Theoretically, this statement also can be correct because equality and justice are the key factors of market competition. However, this kind of developmental corruption model cannot successfully reflect the facts in Mainland China where we can see the increasing corruption rate together with the fast development of market and economic growth. Some severe realities are quite obvious. The number of officials corrupting keeps increasing. The involvement in business field of governmental officials is enlarged. Corruption, originally a concealed individual behaviour, is turning into an organised collusion such as Shanghai Gang. (Gong, 1997)
As I mention before, there is a paradox about the relationship between market economic growth and corruption. Admittedly, corruption keeps developing in Mainland China together with the rapid growth economy. Gong Ting (1997) uses a conceptual framework which is the interactions of formal and informal practice from new institutionalism to give the explanation. She believes that corruption, as an informal practice, is actually a production of formal practice with loophole. They are interactional to some extent. To stamp out corruption, the starting stage should be on the amendment towards formal practice such as legal framework, judicial system and institutional design.
As for the judicial system, she also points out that the wide spread of corruption is facilitated by the way the courts are organized and supervised. The courts, in mainland China, are not different from other governmental agencies. They are not independent. The local government decides the finances of the courts. Senior judges are nominated by the local CPC Committee and endorsed by the local People’s Congress, meaning judges whose decisions are seen to violate Party policy may be discharged or otherwise punished. The courts are subject to the extra-legal authority of the Political-Legal Secretary of the local Party Committee, which deals with difficult and important cases referred to it. (Manion, 2004)
Anti-corruption strategy in Hong Kong
What makes Hong Kong’s economy successful? Several points below are worthy being remarked such as low tax collection, freedom in market competition, a relatively efficient legal system, an efficient and effective network on transportation and communication and “a competent workforce working along with a pool of enterprising entrepreneurs”described by Howlett (1997, p.47) (as cited in Manion, 2004). Those factors not only significantly contribute to the economic development in Hong Kong but also enable Hong Kong’s economic wealth which does good to combatting corruption as the government can afford the salaries of civil servants and enough human and financial resources can be committed. (Quah, 2003)
Different from the Central Commission for Discipline Inspection of the Communist Party of China (Zhongjiwei), the ICAC operates independently in terms of structure, power, finance and personnel. Before 1997, there was a direct access between its Commissioner and the Governor. After July 1997, the ICAC is directly responsible to the Chief Executive. So far, the ICAC has developed into three major functions which are investigation, prevention and education to fight against corruption in Hong Kong. (Scott, 2011)
The Structure of the ICAC
As for its structure, there are main three unequal branches and the Administration Branch. Among the three departments, the largest one which is the Operation Department takes the responsibility of the investigative function. The over nine hundred employees takes up 73% of the ICAC human resource. The head of the Department also serves as the Deputy Commissioner, assisted by two Directors who are in charge of the government sector and the private sector respectively. The second largest one is the Community Relations Department. The two divisions of this Department are mass media and the public. It has 202 staff which is 16% of the total staff in the ICAC. Intensive education projects are conducted in schools and business sectors. In addition, it also builds up a close relationship between mass media and district organisations in order to raise the public awareness and gain their support towards the anti-corruption movement. The smallest department is the Corruption Prevention Department (CPD), taking up 4% of the total employees in the ICAC. In concrete terms, the objectives of the CPD is to inspect the practice and procedures of government and public bodies. Also, it takes the responsibility of making amendments and suggestions on the working methods. Training for civil servants is also offered by the CPD for the purpose of prevention. Apart from these three departments, there is a separated administration department. It is in charge of human and financial resources and general matters such as accommodation and technologic service. Besides, an advisory committee is to examine the work of each department.
The ICAC also has its own recruitment practice. The employees are recruited out of the control of the Public Service Commission, which makes the staff of the ICAC separate from other governmental sections. During the recruitment process, the ICAC itself takes the whole responsibility of promotion, screening, interviewing and other process. As for the financial fund of it, by the 2001/2002 financial year, its budget has reach 81 times compared from the first year when it was established. This rapid increasing in budget reflects the strong will of the government on the support of the ICAC anti-corruption enforcement. (Quah, 2003)
Comparison on Anti-corruption Strategy in Mainland China and Hong Kong
The main difference in mainland China and Hong Kong is the anti-corruption agencies. In Hong Kong, the ICAC is an independent agency with power and increasing budget. More importantly, the Commissioner of the ICAC is directly answerable to the Chief Executive, which makes the ICAC a separated agency apart from other governmental departments. (Harris, 2003) However, in mainland China, unclear boundary exists between the party and government branch. Junctional jurisdictions are dominated by communist party committee generalists at each level. The second point is the institutional design. In Hong Kong, one of the three important methods of anti-corruption is the prevention through institutional design is; in mainland China, certain economic reform policies actually stimulate corruption. Reorganisation of procedures to reduce incentives for corrupt transaction has been shown recently. Finally, the analysis will go back to the basic ground of anti-corruption strategy which is the constitutional design. This essential difference lies in the two different regimes. Hong Kong has a functioning rule of law regime and effective civil liberty while mainland China is conducted by a rule of law regime less constructively and neglect of civil liberty. (Manion, 2004)
Hong Kong’s institutional design not only focus on the enforcement measures but also pays high attention to the prevention by offering suggestion. The ICAC’s Corruption Prevention Department is to study the work procedures in governmental departments to identify opportunities for corruption. (Manion, 2004) Having studied and analysed, suggestions would be offered so as to reduce the possibility of corruption by redesigning the working procedures. Further, after the suggestions are given, the Department is still in charge of checking the effectiveness of the suggestions, making sure the new design would not offer ground for new chances for corruption. The function as consultant is one of the key and unique notion of this department, especially when the government is on its way to draft and amend legislative text and policies. To a great extent, this function makes sure the anti-corruption movement starts from the beginning level where new laws are introduced for an incentive purpose.
Also in mainland China recently, more attention has been paid towards designing incentive structures from the original forcemeat stage. In Anhui province in 2000, the “taxed for fees” reform was adopted from the perspective of being incentive. The reform is to reduced possibility of corruption in the township governments and villages by reforming the basic collection system. It replaces a single agricultural tax, capped at about 7 percent of income and collected by higher level governments, for various fees and charges levied by township and village administrations. Compared with the previous regulations against illegal fees in 1990s, Manion (2004) described that “the reform frees officials at the rural grassroots level from fee collection and makes corruption at the township and village more difficult.”(p. 205) In 2003, this reform was successfully adopted nationwide, becoming a good example in mainland China of transforming to the incentive structure.
According to policy analysts, the key part of institutional design in Hong Kong is the independence of the ICAC and it is what mainland China should emulate when reforming the anti-corruption strategy. This refer to the exclusive anti-corruption mission of the agency: “The ICAC is not embedded in the civil service or any other larger organisation with multiple goals”. Among this, the most important is the police force remaining independent, especially in the 1973 context of a public perception of that department as the most corrupt of all. Agency independent worked in Hong Kong primarily because this agency design worked as a signal, a public announcement of an “equilibrium switch”——but it worked especially well in a particular context. With corruption structured this way, the creation of an agency that effectively rejected the police as anti-corruption agents helped legitimate the government effort and enlisted ordinary citizens as voluntary enforcers. Independent was complemented by power, also an element of agency design: the ICAC was given strong investigate powers and considerable financial resources.
Difference also lies in the law set in Hong Kong and mainland China. The reasons behind it are partly contributed by the different policy choices which illustrate different experience and views. From a perspective of a higher degree, however, basic difference on constraints of power should be noticed.
A solid legal foundation has become the base of Hong Kong’s anti-corruption reform. Two important legislative context have to be introduced. The Prevention of Bribery Ordinance was strengthened in 1971. It provided with a clear definition by including “unexplained income or property”which can serve as the evidence of corruption practices. Clarity, stability, scope and whether it is easy for application, all the points above greatly influence on whether and how a corrupt official can be punished according to law. (Quah, 2003)
To build up a clear legal basis, several points should be well defined. Legal clarity, breadth, stability, and ease of application all contributed to a situation where corrupt officials were routinely punished according to law. And the public confidence of the anti-corruption enforcement is also, to some extent, basing on whether the law is harsh without loopholes.
On the contrary, in mainland China, the main force on combatting corruption is centralised by the CDIC which plays as a leading and administrative role. But as for the legal system itself, it remains weak.
What depletes the development of law and a legal-based authority in mainland China? One point should be noticed that under the leading of the CDIC, the investigation and punishment are conducted within the party system. This makes lag when a criminal case is transferring into the prosecution process. So the agency design which makes anti-corruption enforcement outside the criminal procuratorates system may be one of answers to the question above. (Gong, 2004) Besides, the law making process is also not propitious. The first criminal code was passed in 1979. Then comes rapid changes on political economy which forced law makers refine the law with taking lots of new factors into consideration. The role of law and its distinction between party leadership shows a fundamental contradiction in mainland China. The law should serve as a powerful tool to fight against the abuse of official power. (Manion, 2004)
China’s path of corruption is actually quite similar to the process in Hong Kong, rapid growth in population and economic transition. By viewing Hong Kong as a good example of mainland China, we can find basically one main loophole which is the ambiguity of power between the party and judiciary from both legal and institutional prospective. If mainland China are going to set up an independent agency like ICAC in Hong Kong, a clear boundary must be well-defined. First of all, as for the institutional setting, it is to avoid the interference from the government and the party in order to ensure authority and transparency of this agency. Second, it is to reduce delay when a corruption crime transferred from the investigation of the party to the prosecutors. Further, even though the “fight against tigers”movement achieve success for the current situation, refining the present legal framework still remains the determinant.
The Taliban seek cooperation with China?
How to deal with Afghanistan after the removal of US forces has become a subject that many countries are grappling with. And because Afghanistan and China are linked through Xinjiang, the Afghan Taliban aspire to cooperate with China. According to sources, on July 28, Baradar, the head of the Taliban’s Political Committee, visited China and met with Foreign Minister Wang Yi.
During the meetings, Foreign Minister Wang Yi made a personal plea to the Taliban in Afghanistan, expecting that the Taliban would draw a line with terrorist organizations like the East Iraqi Movement and actively battle them, removing barriers to regional growth and cooperation. Since the United States made it apparent that it intends to withdraw its troops, China’s position toward Afghanistan and the Taliban has become the center of all countries’ attention.
Prior to that, China simply repeated its long-standing foreign policy of non-interference in domestic matters, — in other words, China does not intervene in Afghanistan’s internal problems and expects Afghans to handle their own internal affairs. China, on the other hand, is very concerned about the situation in Afghanistan. China has not only made substantial investments in Afghanistan, but it has also sponsored several dialogues in China between Afghan parties.
Only because of the complexities of the situation in Afghanistan does China lack a clear answer. China has stated its particular needs more explicitly this time than in the past. China has far too many considerations when it comes to Afghanistan. However, in comparison to the behavior of many other nations, China’s demands for the Taliban this time have been well thought out, fair, and controlled.
First, China has maintained its previous favorable policy. Despite the fact that the Afghanistan problem is unique, China has not broken its foreign policy of non-interference in internal matters. On the basis of this strategy, China has had interactions with all parties in Afghanistan, ensuring that participation is not only voluntary, but also sufficient to ensure that all parties understand China’s position in order to avoid misunderstandings.
Second, China has stated its opinion on the subjects that most worry it. China has no space for compromise when it comes to national security. China has not raised this matter in the past, but it still needs to voice its viewpoint at the proper moment. As a result, China has the guts to demonstrate its stance, which will aid in the resolution of the situation.
Only when this issue is settled will future collaboration between China and Afghanistan be simple. The Taliban further said that no troops will be allowed to utilize Afghan territory to conduct activities that harm China. Atta regards China as a reliable ally and thinks that China would contribute to peaceful rebuilding.
Furthermore, China has not permitted certain ill-intentioned groups throughout the world to flourish. Following the withdrawal of the US troops, there was speculation in Western culture that China might become engaged in this issue and become the next growing power to enter the “empire’s tomb.” The Indian army’s recent intervention in Afghan politics appears to demonstrate that, as a powerful country around Afghanistan, it is hard to stay out of the issue.
China avoided the urge to intervene and managed its interactions with all sides sensibly, laying the ground for the next phase in the development of China-Afghan relations. So far, China has not fallen into the West’s trap, nor has the deterioration of the situation in Afghanistan harmed its relations with all parties.
As China expands its global presence, it will eventually come into contact with nations with very difficult political and economic situations, such as Afghanistan. However, China will not flee because of obstacles, because the majority of the world’s developed countries are Western countries with strong biases against China, and those wanting to have good relations with China are frequently developing countries with varied challenges. nation. As a result, China has no option.
Will US-China Tensions Trigger the Fourth Taiwan Strait Crisis?
Half a century ago, the then-National Security Advisor Henry Kissinger flew to Beijing in the hope of seeking China’s alliance to contain the Soviets. His visit culminated in the U.S. agreement to recognize Beijing as the only legitimate government of China instead of Taipei, going back on the promise he had made to the president of the Republic of China, Chiang Ching-kuo, merely one year previously that Taiwan would never be abandoned by the US. The realistic American diplomat may have never thought that one day Taiwan, once ruthlessly forsaken by the US, would become the latter’s most important strategic fortress in East Asia to contain a rising China.
In 2018, the passage of the Taiwan Travel Act encouraged more high-ranking American government officials to visit Taiwan and vice versa1. The US Undersecretary of State Keith Krach landed in Taiwan two years later, rendering him the highest-level State Department official to visit the island since 19792. The Secretary of State, Mike Pompeo, announced the cancellation of all restrictions on official contacts between the U.S. and Taiwan in January 20213 – an action that was vehemently denounced by the Chinese government as Trump’s “last-ditch madness” that would “push the Taiwan question deeper down the road of no return”4.
Just when the world thought of Joe Biden’s ascension to power as a harbinger of softer attitudes toward Beijing, especially regarding Taiwan issues, the diplomatic muscle flexed by the newly elected US president is as eye-tingling as his aviator shades – first, his Secretary of State, Blinken and Secretary of Defense, Austin made an explicit announcement of the U.S. support for Taiwan; second, he sent former Deputy Secretaries of State Richard Armitage and James Steinberg and former senator Chris Dodd to Taiwan in honor of the 42nd anniversary of the Taiwan Relations Act.
America’s incremental interest in the island is not confined to actions from its executive branches, but it has permeated its legislative system. The introduction of the confrontational “Strategic Competition Act of 2021” in April signals the anti-Soviet-style containment of China which was backed by The Senate Foreign Relations Committee. This bill echoes the “Interim National Security Strategic Guidance” released by the Biden Administration in March, and it emphasizes the urgent need to “achieve United States political objectives in the Indo-Pacific” and back closer ties with Taiwan5. With strong bipartisan support, the bill is expected to be signed into law by President Biden and to serve as a legislative compass to counter China at all levels. In that respect, Taiwan Strait is more likely than ever to become “ground zero” by the U.S. and China.
On the other hand, the crackdown on Hong Kong’s democracy movement under the new National Security Law by Beijing proved to be successful due to the limited backlash received from the West. On top of that, Beijing’s handling of Xinjiang cotton issue seems to have managed to incite nationalism among Chinese people on a short notice to boycott “anti-China forces”6. With a record of 380 incursions into Taiwan’s airspace by Chinese air force during 2020, there is reason to believe that Hong Kong and Xinjiang were “guinea pigs” used by Beijing to test its capability for the fourth Taiwan Strait Crisis, the probability of which has been enhanced by Xi Jinping’s attempt to seek reappointment and Beijing’s need to divert domestic attention away from the escalating social conflicts brought about by the stagnant economy.
So, the pertinent question is: if the fourth Taiwan Crisis does break out, when will it happen? It could be sometime after the 2022 Beijing Winter Olympic Games7 as it is unlikely for China to discard the opportunity to showcase its image and test its comprehensive strength8. This could be déjà vu in light of Russia’s successful Blitzkrieg-style invasion of Ukraine in 2014, which occurred only three days after the end of Sochi Winter Olympics. However, China is not the only one who can learn from history. When the rest of the world anticipates China’s intent with regard to Taiwan, preemptive precautions will be taken. The game-theory-type strategic interaction may hence spur China to launch its attack before the upcoming international sports gala.
Another critical timing could be prior to the 20th National Party Congress of the Chinese Communist Party in October 2022. Xi Jinping’s abolishment of term limits through constitutional amendment may pave the legal foundation for his reappointment, but the “widespread opposition within the party”9 renders the legitimacy of his extended tenure unlikely. That is why some may find it hard to conceive of Xi’s attempt to “start an unnecessary war with Taiwan” before his re-appointment10, but his insatiable desire for a 3rd term may push him over the edge. For the time being, Xi seems to be seduced by his burgeoning self-confidence that China is charging into an epoch of opportunity where “the East is rising and the West is declining,”11 and what time is better than now to consolidate his authority in front of dissidents with a military show-off targeting Taiwan?
As Henry Kissinger12 said, “The historical challenge for leaders is to manage the crisis while building the future. Failure could set the world on fire.” When the leaders of the two greatest powers both see their own countries as the future “Leviathan” of the world, the definition of failure can no longer be merely confined to internal mismanagement, but being surpassed by international competitors. Kissinger may have overestimated some leaders’ senses of honor to bear the responsibility of the “historical challenge”, but he can be right about the catastrophic consequences of their failures. But this time, failure is not an option for either side across the Taiwan Strait nor across the Pacific Ocean
- Chen, Y., & Cohen, J. A. (2019). China-Taiwan Relations Re-Examined: The “1992 Consensus” and Cross-Strait Agreements. University of Pennsylvania Asian Law Review, 14(1).
- Mink, M. (2021). The Catalyst for Stronger US-Taiwan Ties. https://keithkrach.com/the-catalyst-for-stronger-us-taiwan-ties/
- Hass, R. (2021). After lifting restrictions on US-Taiwan relations, what comes next? Brookings. https://www.brookings.edu/blog/order-from-chaos/2021/01/11/after-lifting-restrictions-on-us-taiwan-relations-what-comes-next/
- Global Times. (2021). Pompeo may toll the knell for Taiwan authorities. https://www.globaltimes.cn/page/202101/1212378.shtml
- Zengerle, P., & Martina, M. (2021). U.S. lawmakers intensify bipartisan efforts to counter China. Reuters. https://www.reuters.com/world/asia-pacific/us-lawmakers-look-advance-sweeping-bid-counter-china-2021-04-21/
- Cui, J., & Zhao, Y. (2021). Boycott of Xinjiang cotton use opposed. China Daily. https://www.chinadailyhk.com/article/161495
- Everington, K. (2021). Former US security advisor says Taiwan in “maximum danger” from PLA. Taiwan News. https://www.taiwannews.com.tw/en/news/4189160
- China Daily. (2021). Preparing for Winter Olympics promotes quality development – Opinio. China Daily. http://www.chinadaily.com.cn/a/202101/22/WS600a131ba31024ad0baa44f1.html
- The Guardian. (2020). China’s Xi Jinping facing widespread opposition in his own party, insider claims. https://www.theguardian.com/world/2020/aug/18/china-xi-jinping-facing-widespread-opposition-in-his-own-party-claims-insider
- Roy, D. (2021). Rumors of War in the Taiwan Strait. The Diplomat. https://thediplomat.com/2021/03/rumors-of-war-in-the-taiwan-strait/
- Buckley, C. (2021). Xi Maps Out China’s Post-Covid Ascent. The New York Times. https://www.nytimes.com/2021/03/03/world/asia/xi-china-congress.html?_ga=2.178218534.2000768907.1619749005-1359154941.1599697815
- Kissinger, H. A. (2020). The Coronavirus Pandemic Will Forever Alter the World Order. https://www.wsj.com/articles/the-coronavirus-pandemic-will-forever-alter-the-world-order-11585953005
Quad Infrastructure Diplomacy: An Attempt to Resist the Belt and Road Initiative
Over the years, the competition between the great powers in the dual space of the Indian and Pacific Oceans has been rapidly increasing. In the face of the aggravation of relations between the PRC and the United States, the defence dimension of the rivalry between the two contenders for global leadership traditionally comes to the forefront. However, in today’s context, the parties will most likely not engage in military action for the strengthening of their dominance in the region, but they will try to achieve the goals by expanding of economic influence. In this context, along with the well-known trade wars, there is an infrastructure rivalry in the region, which is enforced on Beijing by Washington and the Quadrilateral Security Dialogue (Quad).
The role of Infrastructure in Indian and Pacific Oceans’ countries
The countries of Asia traditionally drawing the attention of the world community due to the high rates of economic, technological, and social development. In less than three decades, their per capita income has increased by 74%, millions of people have been lifted out of poverty, as well as a growing middle class has emerged in the region. All this became possible due to the multilateral cooperation institutionalization and the integration of the economies of the Indo-Pacific. However, the strengthening of trade and economic ties and the future prosperity of Asia largely depends on the infrastructure (ports, highways and railways, airports, pipelines, etc.), which contributes to a more active movement of goods on a regional and global scale. Moreover, back in 2009, the Asian Development Bank (ADB) published a report according to which collective investments in infrastructure in the amount of US$8 trillion will be required to maintain rapid economic growth in Asian countries.
The most prominent infrastructure initiative in recent years is the «Belt and Road Initiative» (BRI), which was launched by China’s leader Xi Jinping in 2013. The BRI helped to fill numerous infrastructure gaps, but the United States and its partners increasingly paid attention to the geostrategic aspect of China’s actions. It’s no secret that the Belt and Road plays an important role in the development and integration of China’s provinces with neighboring countries. However, with the growing number of countries participating in the BRI, as well as the strengthening of China’s influence on a regional and global scale, criticism of the strategic tools for expanding Beijing’s economic influence gradually increased. The Belt and Road has faced a number of critical remarks, including those related to accusations of purposely involving the regional countries in the so-called «debt traps». Regardless of the degree of truthfulness or study of the issue, from year to year, media reports have contributed to the building of a contradictory attitude to China’s BRI among the residents, experts, and political elites all over the world.
Moreover, as soon as Donald Trump became the U.S. President in early 2017, Washington modified the nature of its policy towards China to greater confrontation. This trend has become a direct expression of the intensified great powers’ rivalry and their struggle for hegemony in the Indo-Pacific, as well as a motivation for the revival of the Quadrilateral Security Dialogue (Quad), which includes the United States, Australia, India and Japan. However, the interaction of the Quad has long been built on the basis of defence.
This trend continues nowadays, as evidenced by the frequent exercises and the growing Quad naval presence in the Indo-Pacific but in 2021 the Quad countries expanded their range of issues on a multilateral basis. Now the agenda includes vaccine diplomacy (providing 1 billion COVID-19 vaccines to Indo-Pacific countries, climate change, technological cooperation, maritime security, cybersecurity, and external development assistance. According to Kurt Campbell, Indo-Pacific policy coordinator at the National Security Council, Washington is looking to convene an in-person fall summit of leaders of the Quad countries with a focus on infrastructure in the face of the challenge from China.
Quadrilateral infrastructure diplomacy as the continuing vector of the Trump’s administration
The infrastructure agenda also became an important part of the last summit of the G7 countries’ leaders, during which the parties expressed their willingness to establish a BRI counterpart called Build Back Better World (B3W). In total, there are 22 mentions of infrastructure in the final G7 Summit Communiqué. Even despite the traditionally restrained position of India, which took the time to «study the specifics of the proposal», infrastructure diplomacy of Quad is becoming a new area of geostrategic competition in the Indo-Pacific.
There’s one exception: the activities on the infrastructure track are not a new trend of U.S. President Joe Biden’s administration, but a continuation of the foreign policy vector set during the presidency of Donald Trump. It was he who turned Sino-U.S. rivalry into a geo-economic level. Back in 2017, the Foreign Ministers of the Quad countries stated the need for high-quality infrastructure development in order to ensure freedom and openness of sea routes, as well as improve intra-regional ties. In 2018, MoU was signed between the US Overseas Private Investment Corporation (OPIC), the Japan Bank for International Cooperation (JBIC) and the Ministry of Foreign Affairs and Trade of Australia, aimed at implementing major infrastructure projects in the Indo-Pacific. Moreover, the Quad countries raised the question of the BRI countries’ growing debt during their official meeting in Singapore.
It was clear that the Belt and Road Initiative is perceived by the Quad countries as the main factor in expanding the economic and political influence of the People’s Republic of China, as well as China’s influence of the domestic political processes in the countries of Indo-Pacific. At the same time, the combination of economic and defence rivalry enforced on Beijing by Washington, as well as Quad’s efforts to build a balance of power in the region actually indicates the explicit anti-China nature of the Quad.
In this case, it’s important to note that each of the Quad countries has its own levers of influence, which they can combine in infrastructure competition with Beijing. For example, in 2015, in response to the implementation of the Belt and Road Initiative and the establishment of the Asian Infrastructure Investment Bank (AIIB) by China, Japan made the Partnership for Quality Infrastructure (PQI). The United States, in turn, announced the infrastructure project Blue Dot Network (BDN), as well as the Ministry of Foreign Affairs and Trade of Australia established a new Partnerships for Infrastructure (P4I). All these initiatives are united by a commitment to inclusive economic growth, «quality infrastructure», climate change, disaster response, and social development. The capitalization of the Japanese, American and Australian initiatives is US $110 billion (US$50 billion from Japan and over US$50 from the Asian Development Bank), US$30-60 million, and US$383 thousand (including access to US$4 billion of foreign aid and $US2 billion from the Australian Infrastructure Financing Facility for the Pacific), respectively. Given the ongoing discussions about debt traps, the emphasis on «high-quality infrastructure» may give special features to the initiatives of the Quad but even the total amount of funding will not be able to compete with the US$770 billion investments already made in 138 countries of the world and announced by China.
Anyway, Quad is stepping up its infrastructure diplomacy in at least three areas, including Southeast Asia, Oceania, and the Indian Ocean. For example, Australia, Germany and Switzerland have already allocated US$13 million to the Mekong River Commission For Sustainable Development (MRC) to assist Cambodia, Laos, Thailand and, Vietnam «to respond to pressing challenges while safeguarding the ecological function of the Mekong River and improving people’s livelihoods».At the same time, Australia signed US$300 million MoU with Papua New Guinea, aimed at the ports reconstruction in the major state of Oceania (the ports of Vanimo, Kimbe, Motukea, Lorengau, Oro Bay, Daru, Lae, etc.). It is important to highlight that the increasing economic and infrastructural presence of China in the countries of Oceania, energize Australia’s policy in the South Pacific, which is a traditional zone of influence of Canberra. At the same time, the expansion of Australia’s aid and investment to the broader Indo-Pacific is due to the commitment of the current Australian government to the U.S. foreign policy.
In turn, the reaction of the Southeast Asian countries to the intensification of Quad infrastructure diplomacy will be more restrained. According to the latest Pew Research Center survey, the most unfavourable view of China is in the United States (76%), Canada (73%), Germany (71%), Japan (88%), Australia (78%), and South Korea (77%), while in Singapore — the only country representing ASEAN in the survey — the percentage of unfavourable views on China is at a low level (34%). Moreover, considering the aspects of infrastructure diplomacy in the region, we should definitely refer to the survey of the Center for Strategic and International Studies (CSIS) of the political elites of the region «Powers, Norms, and Institutions: The Future of the Indo-Pacific from a Southeast Asia Perspective», published in 2020. Despite the intentional exclusion of Russia from the survey, it approximately reflects the trends in the Indo-Pacific countries at the present stage. Thus, as a result of the survey, American experts revealed that the political elites of Southeast Asia positively assess China’s activities in the field of infrastructure development, which has brought tangible benefits to most Southeast Asian countries.
China is actively reacting to verbal attacks from the United States and Quad. The infrastructure agenda was no exception, but China responded by modernizing its global Belt and Road Initiative. In response to criticism about the involvement of the countries in debt traps, Beijing has developed a new Foreign Policy White Paper «China’s International Development Cooperation in the New Era». The document was published in early 2021. According to the provisions of the new White Paper, China will pay closer attention to the process of implementing projects within the aid framework, take an active part in evaluating projects in order to monitor their quality, maintain an appropriate level of confidence in its projects to China, as well as conduct bilateral consultations to identify difficulties with debt repayment and make sure that partners do not fall into a debt trap. It’s possible that the new vision of the PRC will appear especially quickly in countries where the Quad will primarily try to implement their infrastructure projects.
China is the first country in the region, which pays significant attention to the issues of large-scale infrastructure development. Moreover, Beijing has a number of advantages over its opponent — Quad. First, the Belt and Road initiative is more structured and aimed at intensifying trade, economic, cultural and humanitarian cooperation with neighboring countries, while the emerging Quad infrastructure agenda is «dispersed» among numerous individual initiatives, doesn’t have the same level of stability as the BRI, and even after 3.5 years of building the agenda is considered through the prism of expectations.
Second, China’s initiative is aimed at a single infrastructure connection between the PRC and the rest of the world and acts as a potential basis for the intensification of global trade in the future. At the same time, today’s projects of the Quad are of a “sporadic» nature and can’t contribute to the infrastructure linkage between Europe, Africa, South and Southeast Asia on a global scale.
Third, China can already offer the Belt and Road members not only logistics infrastructure but also the opportunities in the field of green energy. At the end of 2019, China produced about a third of the world’s solar energy and retained a leading position in the number of wind turbines. Within the foreseeable future, the Quad countries, and especially the United States, will have to compete with China even in the field of the climate agenda, which is so close to the new administration of the U.S. President Joe Biden.
Finally, during his recent speech on the occasion of the 100th anniversary of the Chinese Communist Party (CCP), PRC’s Leader Xi Jinping confidently declared the great revival of the Chinese nation, its contribution to the progress of human civilization, and its readiness to build a new world, which undoubtedly indicates China’s decisiveness to respond to challenges to its address, including from the Quad.
The ongoing transformation of the regional architecture in the Indo-Pacific, both in the defence and economic areas, will be an important aspect in the post-pandemic era. China has repeatedly stated about the «covered» Quad activities to deterrence Chinese policy in the region, but the expansion of the Quad’s agenda by infrastructure diplomacy allows us to speak about the evident vector of the Quad strategy against the PRC.
However, nowadays the Quad countries had been left behind. China already has the world’s most numerous land forces, the largest navy, as well as an ambitious global Belt and Road initiative that includes almost 140 countries and a capitalization approaching US$1 trillion. Of course, Quad is moving towards the institutionalization of its infrastructure cooperation and the potential expansion of the number of participating countries to the Quad Plus format. However, to reach China’s achievements for the period 2013-2021, the new alliance will need at least a decade.
At the same time, the rivalry of the Belt and Road with the Quad’s infrastructure initiative will help the countries of the region to diversify their infrastructure ties but will make their choice even more difficult, since it will primarily be regarded as support for the foreign policy vision of one of the parties, and not a pragmatic estimate of economic benefits. All this makes the regional environment in the Indo-Pacific increasingly complex and forces middle powers and smaller countries to adapt to new geostrategic realities.
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